Super Angel Ron Conway On Angel Investing (Part Deux)

You guys asked for more from our conversation with Ron Conway. We're happy to oblige. We didn't tape it, but Ron talks relatively slowly and we type fast. Here's what we have:

Ron on the market for angel money: “I would imagine by early next year, some entrepreneurs will decide to forego the startup route until funding gets easier. Every investor is going to get more selective (because) the liquidity paths just aren’t going to be there for a while. The IPO market is completely dried up. The liquidity path that we were relying on was M&A, and with the financial markets, that’s going to slow down.”

Ron on why angels are getting more selective: “Angel investing won’t dry up. But the angel investors will get even more selective because when they put money in a company they’re going to have to make sure that whatever money that company’s raising is going to last for at least a year, because the market is going to be tight for at least a year. So if a new start up doesn’t raise at least a year of cash, if they’re out there in six months (looking for more) they won’t be able to get that cash.”

Ron on the opportunities for entrepreneurs in a downturn: “There are a lot of charts that show all these great companies that started in downturns. But I think a bunch of great companies started in upticks too. I think great companies get started by great entrepreneurs and there’s a supply of those all the time.”